Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data: Product LN 35 Product LN 40 Sales budget Expected volume in units 400,000 239,000 Unit selling price $31 $34 Production budget Desired ending finished good units 33,000 21,000 Beginning finished goods units 21,000 14,000 Direct materials budget: Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 49,000 16,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.50 0.70 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $856,000 for product LN 35 and $393,000 for product LN 40, and administrative expenses of $525,000 for product LN 35 and $181,000 for product LN 40. Income taxes are expected to be 30%. Prepare the sales budget for the year. SHAMROCK INC. Sales Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total Expected sales in units enter a number of units enter a number of units Unit selling price $enter a dollar amount $enter a dollar amount Total sales $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the production budget for the year. SHAMROCK INC. Production Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total select an opening production budget item enter a number of units enter a number of units select between addition and deduction : select a production budget item enter a number of units enter a number of units select a summarizing line for the first part enter a total number of units for the first part enter a total number of units for the first part select between addition and deduction : select a production budget item enter a number of units enter a number of units select a closing production budget item enter a total number of units enter a total number of units enter a total number of units Prepare the direct materials budget for the year. SHAMROCK INC. Direct Materials Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total select an opening direct materials budget item enter a number of units enter a number of units select an item enter a number of kilograms enter a number of kilograms select a summarizing line for the first part enter a total number of kilograms for the first part enter a total number of kilograms for the first part select between addition and deduction : select an item enter a number of kilograms enter a number of kilograms select a summarizing line for the second part enter a total number of kilograms for the second part enter a total number of kilograms for the second part select between addition and deduction : select an item enter a number of kilograms enter a number of kilograms select a summarizing line for the third part enter a total number of kilograms for the third part enter a total number of kilograms for the third part select an item $enter a dollar amount $enter a dollar amount select a closing direct materials budget item $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount

Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data: Product LN 35 Product LN 40 Sales budget Expected volume in units 400,000 239,000 Unit selling price $31 $34 Production budget Desired ending finished good units 33,000 21,000 Beginning finished goods units 21,000 14,000 Direct materials budget: Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 49,000 16,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.50 0.70 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $856,000 for product LN 35 and $393,000 for product LN 40, and administrative expenses of $525,000 for product LN 35 and $181,000 for product LN 40. Income taxes are expected to be 30%. Prepare the sales budget for the year. SHAMROCK INC. Sales Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total Expected sales in units enter a number of units enter a number of units Unit selling price $enter a dollar amount $enter a dollar amount Total sales $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the production budget for the year. SHAMROCK INC. Production Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total select an opening production budget item enter a number of units enter a number of units select between addition and deduction : select a production budget item enter a number of units enter a number of units select a summarizing line for the first part enter a total number of units for the first part enter a total number of units for the first part select between addition and deduction : select a production budget item enter a number of units enter a number of units select a closing production budget item enter a total number of units enter a total number of units enter a total number of units Prepare the direct materials budget for the year. SHAMROCK INC. Direct Materials Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total select an opening direct materials budget item enter a number of units enter a number of units select an item enter a number of kilograms enter a number of kilograms select a summarizing line for the first part enter a total number of kilograms for the first part enter a total number of kilograms for the first part select between addition and deduction : select an item enter a number of kilograms enter a number of kilograms select a summarizing line for the second part enter a total number of kilograms for the second part enter a total number of kilograms for the second part select between addition and deduction : select an item enter a number of kilograms enter a number of kilograms select a summarizing line for the third part enter a total number of kilograms for the third part enter a total number of kilograms for the third part select an item $enter a dollar amount $enter a dollar amount select a closing direct materials budget item $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data:

	Product LN 35	Product LN 40
Sales budget
Expected volume in units		400,000	239,000
Unit selling price		$31	$34
Production budget
Desired ending finished good units		33,000	21,000
Beginning finished goods units		21,000	14,000
Direct materials budget:
Direct materials per unit (kilograms)		2	3
Desired kilograms of ending direct materials		49,000	16,000
Beginning kilograms of direct materials		40,000	10,000
Cost per kilogram		$2	$3
Direct labour budget
Direct labour time per unit (hours)		0.50	0.70
Direct labour rate per hour		$12	$12
Budgeted income statement
Total unit cost		$11	$20

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $856,000 for product LN 35 and $393,000 for product LN 40, and administrative expenses of $525,000 for product LN 35 and $181,000 for product LN 40. Income taxes are expected to be 30%.

Prepare the sales budget for the year.

SHAMROCK INC. Sales Budget For the Year Ending December 31, 2022
	LN 35	LN 40	Total
Expected sales in units	enter a number of units	enter a number of units
Unit selling price	$enter a dollar amount	$enter a dollar amount
Total sales	$enter a total dollar amount	$enter a total dollar amount	$enter a total dollar amount

Prepare the production budget for the year.

SHAMROCK INC. Production Budget For the Year Ending December 31, 2022
	LN 35	LN 40	Total
select an opening production budget item	enter a number of units	enter a number of units
select between addition and deduction : select a production budget item	enter a number of units	enter a number of units
select a summarizing line for the first part	enter a total number of units for the first part	enter a total number of units for the first part
select between addition and deduction : select a production budget item	enter a number of units	enter a number of units
select a closing production budget item	enter a total number of units	enter a total number of units	enter a total number of units

Prepare the direct materials budget for the year.

SHAMROCK INC. Direct Materials Budget For the Year Ending December 31, 2022
	LN 35	LN 40	Total
select an opening direct materials budget item	enter a number of units	enter a number of units
select an item	enter a number of kilograms	enter a number of kilograms
select a summarizing line for the first part	enter a total number of kilograms for the first part	enter a total number of kilograms for the first part
select between addition and deduction : select an item	enter a number of kilograms	enter a number of kilograms
select a summarizing line for the second part	enter a total number of kilograms for the second part	enter a total number of kilograms for the second part
select between addition and deduction : select an item	enter a number of kilograms	enter a number of kilograms
select a summarizing line for the third part	enter a total number of kilograms for the third part	enter a total number of kilograms for the third part
select an item	$enter a dollar amount	$enter a dollar amount
select a closing direct materials budget item	$enter a total dollar amount	$enter a total dollar amount	$enter a total dollar amount

Prepare the direct labour budget for the year. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.)

Prepare the budgeted income statement for the year. (Note: Income taxes are not allocated to the products.)

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